Skooby Dubby Doo Inc. sells 3 products. Budgeted fixed cost for next period is $10,650. Use the following data to be guided: Product Units Selling Price Variable Cost Skooby 16,000 14 9 Dubby 12,000 10 6 Doo 52,000 11 8 How many units of product Dubby must be sold in order for the firm to earn an operating income of $8,520?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Skooby Dubby Doo Inc. sells 3 products. Budgeted fixed cost for next period is $10,650. Use the following data to be guided:
| Product | Units | Selling Price | Variable Cost |
| Skooby | 16,000 | 14 | 9 |
| Dubby | 12,000 | 10 | 6 |
| Doo | 52,000 | 11 | 8 |
How many units of product Dubby must be sold in order for the firm to earn an operating income of $8,520?
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